Should I Sell My House?
September 13, 2021
Selling your home is a huge decision. It doesn’t only effect you practically but also emotionally, especially if it’s your first home.
So, how do you figure out when the right time is to sell your house? In this blog post, we will go through the 8 signs that tell you it might be time to sell your house.
8 Signs It’s Time To Look For a New Home
1. You Have Outgrown Your Current Home
One of the first signs that it might be time to sell your house is that your living conditions have changed since you bought it.
For instance, your kids may have moved out, and now you no longer need a house with a big front yard.
Or, you may have decided that you and your partner will be working from home, and now need some extra space to set up a home office.
Maybe you are nearing retirement, and planning to get a ground-floor suite for convenient living.
Here are a few other signs that you’ve outgrown your home:
- You don’t have enough room in your home for storage
- Your kids are starting to go to school, so you need to be close to the school district
- You are always thinking about buying a new home
2. The Neighborhood is No Longer Desirable
There can be several reasons the neighborhood that you loved earlier is now not desirable to you.
Some of these reasons could be:
- You no longer find those long commutes to your job amusing
- You are tired of the restrictions by the local neighborhood association
- Several of your neighbors have already sold their homes and left
These are only some of the signs to look for when deciding if you should move on to a new, better location.
3. Home Maintenance is Killing Your Savings
You bought a fixer-upper after being influenced by a TV series, like many others, and now the upkeep is destroying your savings.
You are tired of the added maintenance expenses, and cannot afford them.
As a rule of thumb, if your house repair and maintenance expenses have become more than 25% of your household income, then you should consider moving to a new place.
Calculate your monthly repair and maintenance expenses for the last six months, and you will have a clear idea of how much of your money has gone to home maintenance.
4. Renovations Won’t Do Any Good
How much will the renovation cost? How much value would it add to your existing price?
You might be tempted to renovate your home to add more value to it, but before you do that you need to assess all of the costs.
For instance, a new kitchen or a bathroom overhaul might make your home more attractive, but will it bring returns for the amount of money that you put into it?
Every neighborhood has a price ceiling, which even the most costly renovations won’t break.
It’s always a good idea to talk to a real estate agent about the renovations, and see what he or she suggests.
5. Market Conditions Are Favorable
A seller’s market is when there are less properties and more potential buyers.
A seller’s market is also the best time to sell a house.
You can expect to get more for your property in a seller’s market as there is more competition buyers. A telltale sign that you are in a seller’s market is when houses in your neighborhood are flying off the shelves. That means the real estate market is hot and you can easily make a profit by selling your house.
6. You’re Financially Ready To Make a Move
Building positive equity is another sign that you are ready to sell your house and move onto a new place. Think of equity as the amount of ownership you have in your home. Every time you pay a mortgage you are gaining a bit more equity.
How do you calculate the equity you have?
Take the current value of your home and then subtract the mortgage payments remaining on the house. The profit or loss that you will be making on the transaction is the equity. For instance, if someone owes $100,000 in mortgage payments but the house’s current value is at $400,000, that person’s home equity is $300,000, they have 75% equity in their home.
If you are not getting enough equity to cover the costs of buying a new property, then selling your current home is not a good idea. Don’t forget to include the moving and settling costs in your calculations as well.
7. You’re Ready For An Emotional Roller-coaster
Selling a home can be an emotional whirlwind.
After all, this is the place where you watched your children grow. You’ve had the most wonderful times of your life in this place. There can be countless memories worth cherishing that make you feel overwhelmed while deciding to sell your home.
At the same time, potential buyers disrupting your routine with queries, visiting, and more can be too much for many to handle.
However, if you feel ready to take on this emotional endeavor, then you may be ready to sell your home.
8. You’re Prepared For What Comes Next
Selling a home probably also means that you will be buying a new one and hopefully you’re prepared for it.
Hopefully, you’ve sorted your finances, and are up to date with the real estate trends.
You’ve already shortlisted a few neighborhoods where you’d like to move.
You’ve gotten in touch with a few real estate agents and researched the options.
You’ve also done calculations about the expenses incurred with a buying a new house, moving in and settling down.
Summing it up
Just like buying a house, selling a house is one of the biggest decisions someone can make.
If you find yourself nodding to most of the signs listed, then perhaps you are ready to make this important decision and sell your house.
Whatever you choose, just remember to thoroughly plan for it and prepare yourself mentally for the decision.
All the best.